Cryptocurrencies like Ether and Shiba Inu can offer a lot of potential, but they are also quite volatile. This makes it crucial to ensure you’re buying the right ones. Not only can you miss out on major gains if you own the wrong cryptocurrency, but as we’ve seen with Dogecoin over the last few months, there’s no guarantee that these cryptocurrencies always go up.
In general, many investors are bullish on the industry. But that certainly doesn’t mean each cryptocurrency will survive.
So when Dogecoin was falling with the rest of the industry prior to the summer, it was somewhat normal. Now that the industry has recovered and top cryptocurrencies like Bitcoin and Ether have reached new all-time highs, though, it’s concerning for other cryptocurrencies like Dogecoin that are still struggling when the industry clearly continues to gain in popularity.
Is Shiba Inu worth an investment? One of the reasons Dogecoin has likely fallen out of favour is that a lot of investors have switched their focus to Shiba Inu, another so-called meme token. And to be fair, Shiba Inu does have more use cases than Dogecoin. However, there are still many drawbacks, and there is no way it should be one of the top 11 most valuable cryptocurrencies.
Ether, on the other hand, is the second most valuable cryptocurrency, and some could make the argument that it should pass Bitcoin to become the top valued digital coin.
Ether and the Ethereum blockchain have created an enticing opportunity and almost everyone that’s bullish on the cryptocurrency industry would tell you that Ether is one of the best investments you can make.
So in my view, if you’re wondering whether to buy Shiba Inu or Ether, it’s not even close. Ether and other blockchain networks that are EVM compatible and can run smart contracts are some of the best cryptocurrencies to invest in today.
And with Ethereum 2.0 in the process of rolling out, the potential for Ether only continues to improve. Right now, if you want to invest in Shiba Inu and send it to your wallet, you’re going to need to buy Ether anyway to pay for the transaction. And that’s not the only reason you would need to own Ether.
So rather than speculate on Shiba Inu, taking a long-term position in Ether for the long run seems like a far better investment.
How to gain exposure to Ether? One of the ways you can gain exposure to Ether is by actually buying the cryptocurrency. If you’re going to buy, it though, keep in mind that transaction costs and gas prices when you send it to your wallet. This may sound like a hassle, but if you’re ever going to buy NFTs or do anything DeFi-related (including buying Shiba Inu), then you’re going to need Ether in your wallet.
Another way you could gain exposure to Ether is with a mining stock such as HIVE Blockchain Technologies, which mines Ether, among other cryptocurrencies.
These mining stocks can offer a tonne of growth potential, but their operations aren’t completely straightforward, and they won’t always follow the price of their underlying cryptocurrencies. So if that still doesn’t sound attractive you could also consider an ETF that buys and holds the Ether for you.
Whichever investment you buy, make sure you understand why it has potential and then commit to it for the long term. These cryptocurrencies and the stocks that follow them can be highly volatile. But if you take a long-term approach and avoid speculative investments like Shiba Inu, you stand to see some massive gains.
The post Ether vs. Shiba Inu: Which Is the Better Buy? appeared first on The Motley Fool Canada.
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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